Bank lending gains momentum in Romania, driven by corporate segment

The stock of bank loans in Romania increased by 8.3% yoy at the end of April, when it reached RON 293.6 bln (EUR 59.9 bln), according to the National Bank of Romania (BNR).

The bank lending gained momentum compared to January when the annual growth rate was only 5.1% yoy.

While the portfolios of both household and corporate segments expanded by double-digit rates compared to April 2020 - the corporate part boasted an above-average rise of 17.3% yoy (speaking of local currency loans alone) that furthermore reverses the -0.03% yoy negative performance displayed last April, at the outset of the crisis.

Household lending has always been an active segment of the banking market, and the 11.0% yoy increase posted as of April this year comes as no surprise, even after a challenging year. Nonetheless, the past year was not as harsh as expected initially, and the repayment moratorium had a positive impact in terms of the stock of loans.

Compared to April 2020, the household lending posted this April a slightly slower annual growth (+11% yoy vs +12.7% yoy) that does not change the big picture - but highlights the momentum gained by the corporate segment. The Government guarantees have definitely contributed to this.

As of April, the loans denominated in local currency accounted for 70% (RON 206 bln). Out of this, 60% (RON 123.5 bln) was formed buy household loans. The stock of foreign currency-denominated loans (mostly corporate) contracted by 2.3% yoy to RON 87.1 bln at the end of April.

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